Question: A bank developed a model for predicting the aver-age checking and savings account balance as balance = - 17,732 + 367 * age + 1,300

A bank developed a model for predicting the aver-age checking and savings account balance as balance = - 17,732 + 367 * age + 1,300 * years education + 0.116 * household wealth.

a. Explain how to interpret the numbers in this model.

b. Suppose that a customer is 32 years old, is a college graduate (so that years education = 16), and has a household wealth of $ 150,000. What is the predicted bank balance?

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Checking and Savings Account Balance Model BALANCE 17732 367 x AGE 1300 x YEARS EDUCATION 0116 x ... View full answer

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